Midwest Business Index Hits Highest Since October

Business activity in the Chicago area expanded in April at the fastest pace in six months, a sign manufacturing will keep supporting the world’s largest economy.

The Institute for Supply Management-Chicago Inc.’s business barometer rose to 63, exceeding all forecasts in a Bloomberg survey of economists and the highest since October, from 55.9 in March, according to a report. A reading above than 50 signals expansion.

Rising demand for durable goods such as automobiles and business equipment is driving gains in manufacturing, which makes up about 12 percent of the economy. Faster job creation would generate wage growth, accelerating the pace of consumer purchases and resulting in more orders for factories.

The median forecast of 49 economists surveyed by Bloomberg was 57. Estimates ranged from 54 to 60.5.

The national factory index, produced by Tempe, Arizona-based Institute for Supply Management, probably advanced to 54.2 this month from 53.7 in March, according to the Bloomberg survey median ahead of the May 1 release.

The report showed orders, production and employment all jumped this month compared with March.